Discover the Boom in Electronic Banking!

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© Family Economics & Financial Education – December 2005– Get Ready to Take Charge of Your Finances – Electronic Banking Bonanza – Slide 1

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Discover the Boom in Electronic Banking!

Electronic Banking Bonanza

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Electronic Banking Bonanza There has been a big boom in electronic banking. Like the great

gold rush, millions of banks, businesses and people have made

the move to electronic banking over the past few years but the topic is

still relatively new to many consumers.

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E-Banking• What is electronic banking or e-

banking? – Computer networks transfer money

electronically• Using the phone, Internet or store

machine, people can– Make withdrawals– Deposit money– Pay bills– Check account balances– Transfer money between accounts

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Why the big BOOM?

Benefits to E-Banking

• 24-hour access• Fast• No paper• Convenient• Worldwide access

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Types of E-Banking

• Debit Card• ATMs

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Debit Card• A plastic card, which looks like a credit

card and is linked to bank accounts• Money is automatically taken out of an

account when a purchase is made• Requires a PIN (Personal Identification

Number) to access bank accounts. – Confirms the user of the card is

authorized to access the account. – Customer swipes card and then signs a

receipt or enters a PIN to approve the transaction

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ATM• Automated Teller Machines (ATM’s)

– Electronic computer terminals used to make deposits or withdraw cash from a bank account

• ATM machines can be found in various places including banks, supermarkets, convenience stores

• Must have a debit card and PIN to access accounts using an ATM

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ATM continued

• ATMs are usually free for customers using his/her financial institution’s ATM

• Some ATMs charge a fee for use, financial institutions may also assess a fee if a customer uses another bank’s ATM

• If the ATM does charge a fee, the amount will be posted on the ATM screen

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How to Use the ATM

• Insert ATM card into the slot• Enter PIN• Perform the desired transaction

– deposit or cash withdrawal• Keep printed receipt to compare with

monthly bank statement• Remember to take the ATM card

when finished

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E-Banking Safety• Sign the back of the cards

and write “See ID”

• Memorize PIN and keep it hidden– Do not write it down where the

card is kept– Do not tell others– Shield the PIN with body at

ATMs – Do not give it out over the

phone or e-mail– Change PIN if it is suspected

someone else knows it

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E-banking Safety continued• Write down the card number and

financial institution contact information– Store it in a safe place separate

from the card in case the card becomes lost or stolen

• Report lost or stolen cards to the financial institution immediately.

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Current TrendsCheck Clearing for the 21st Century

Act (Check 21)• Check 21 allows checks to be

automatically scanned to transfer funds electronically

• Withdraws money from checking account almost immediately

• Must have money in account before writing check

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The Future of E-Banking• E-banking is a

continually changing market– One card being developed

to function as a smart card, debit card, credit card, and ATM card

• Change from PIN accessed accounts to:– handprint, eye, fingerprint

scans or voice commands

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Happy Trails

Understanding E-Banking can help you manage your finances

properly and safely!Any Questions?

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Discover the Boom in Electronic Banking!